Number of small organizations in Armenia has decreased

According to 2025 statistics, the number of organizations in Armenia has significantly declined. Specifically, as of December 2024, there were 70,560 organizations, while by December 2025, the number had dropped to 65,627. In December 2025 there were 4,933 fewer organizations compared to December 2024.

Let’s examine how the number of organizations changed in relation to employee count. In December 2024, there were 59,025 organizations with 1–9 employees, while in December 2025 this number fell to 53,540. In other words, the number of organizations in this category decreased by 5,485. For other categories, however, the change was positive: organizations with 10–49 employees increased by 453, those with 50–249 employees increased by 98, and those with 250 or more employees increased by 1.

Given the growth in other groups, one might assume that some small organizations expanded their staff. However, the overall decline points to many shutting down. It is important to examine which organizations closed, but there are serious concerns that this primarily affected small businesses unable to withstand tax changes.

It is notable that in 2024, the number of organizations with 1–9 employees had increased compared to December 2023, and likewise, the number in December 2023 was higher than in 2022. In other words, the decline in 2025 coincided with changes in tax legislation, including an increase in turnover tax. This fact should not be overlooked.

There is also parallel data on employee numbers: although the number of organizations with 1–9 employees decreased, the total number of employees increased. At first glance, this seems contradictory, but the issue lies in the definition of the 1–9 employee category. The number of organizations in this range may shrink, while others grow—for example, from an average of 2 employees to 7. As a result, the overall workforce rises.

For objectivity, this should be emphasized as well. However, the reduction in the total number of organizations is, at the very least, a matter deserving attention.